Welcome to Innovating Payments Top 3 News Headlines for the week of June 12. In March 2022, the limit for Same Day ACH transactions was raised to $1 million per payment, taking the total amount of dollars flowing through Same Day ACH in March 2022 to $115 billion, a 42 percent increase from February 2022. Also making news this month: About $1 billion guaranteed by some 260,000 market investors was liquidated due to margin calls. The crypto market has lost 66 percent of its value since November 2021. Meanwhile, the Financial Brand calls for financial institutions to build resiliency to recession-proof and future-proof their businesses.
Read on to learn more.
1. What a Difference $1 Million Makes for Same Day ACH (Nacha)
ACH end users have consistently and constantly asked for higher dollar limits for Same Day ACH payments. In March 2020, the original limit of $25,000 was raised to $100,000. Then, two years later in March 2022, the limit was increased again to $1 million per payment. Let's look at the impact this most recent change has made. The total amount of dollars flowing through Same Day ACH in March 2022 was $115 billion. This is an increase of 42% versus the prior month of February 2022, in which $81 billion moved through Same Day ACH. (Read more.)
2. Bitcoin Plummet Triggers $1B in Margin Calls (PYMNTS)
About $1 billion guaranteed by some 260,000 market investors was liquidated due to margin calls in the past 24 hours, according to data from CoinGlass, the Wall Street Journal reported on Tuesday (Jan. 14). The day trading frenzy during COVID helped take cryptocurrency to new heights in 2020, hitting record highs in November 2021. The crypto market has since lost 66% of its value, according to the report. (Read more.)
3. Building Banking Resilience During a Recession (The Financial Brand)
Some say recession is coming. Others say it's already here, while still others don't believe the economy will suffer much in the near-term. No matter what the future brings, financial institutions need to develop a strategy that can recession-proof and future-proof their current business model . . . The banking industry has a once-in-a-generation opportunity to transform legacy business models to become more competitive and more resilient during economic upheaval. (Read more.)
What differences do you see in ACH transaction value since raising the limit to $1 million? Cryptocurrency is making headlines this week, but for all the wrong reasons. How have this week's headlines impacted cryptocurrency discussions in your organization? Finally, what is your financial institution doing to recession-proof and future-proof your current business model?
Check back soon for our next issue, which will again highlight the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.